Barclays Follows JPMorgan in Loosening Bonus Cap — Financial News

By Justin Cash

Of Financial News

Barclays is loosening the cap on bonuses for its dealmakers as U.K. banks begin to follow their Wall Street peers with pay overhauls.

The U.K. lender has followed in the footsteps of JPMorgan and Goldman Sachs by lifting how much City bankers can earn in performance-related pay after the legacy EU limit of twice fixed pay was ditched by the Conservative government last year.

Barclays' material risk-takers can now earn up to 10 times fixed pay, matching JPMorgan's new system, but less than Goldman's move to 25 times base salary, with the U.S. giant taking a more aggressive line on phasing out higher fixed pay in favor of bigger potential performance uplifts.

Some 1,600 staff will be affected by the change, but it doesn't apply to those still subject to EU regulation, given the bloc has kept the ceiling.

A Barclays spokesperson said: "The revised bonus cap will not alter the way Barclays sets its incentive pool, which is based on overall group performance."

"It will allow us greater flexibility to differentiate individual bonuses within a small and defined group of colleagues, enabling Barclays to continue to compete effectively to retain and attract the best talent globally."

The news was first reported by Bloomberg.

The changes take effect from the 2024 performance year, according to a memo seen by Financial News, after Barclays shareholders approved resolution at the bank's May AGM to acknowledge the flexibility now allowed.

Financial News is owned by News Corp, the parent company of The Wall Street Journal and Dow Jones Newswires.

Write to Justin Cash at justin.cash@dowjones.com

Website: www.fnlondon.com

(END) Dow Jones Newswires

August 08, 2024 11:21 ET (15:21 GMT)

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